Inconsistencies in Government Policy for Workers Judging from Law Number 6 of 2023 concerning Job Creation

Abstract

After the 2023 Job Creation Law was passed, one aspect that was highlighted was the provisions related to outsourcing. This law amends articles 64 and 66 and deletes article 65, which results in several changes in the concept of outsourcing compared to before. First, the term used now is "outsourcing", no longer distinguishing between "work contract agreement" or "worker service provision agreement". Second, the type of agreement that can be used in outsourcing is PKWTT or PKWTT with the transfer of protection of workers' rights if there is a change in outsourcing company, provided that the work object still exists. Third, restrictions on types of work are removed, so that outsourcing no longer differentiates between core business and critical business. The flexibility provided by the 2023 Job Creation Law in terms of outsourcing provides employers with the opportunity to reduce the number of workers, which has the potential to impact workers' rights. Even though the Job Creation Law imposes several changes to the concept of employment relations, especially regarding outsourcing, the level of protection for workers is still considered low.